Here’s a run down of the tax changes from 5 April 2016 following the summer budget and the Autumn statement:
Corporation tax
Still 20%. 19% from 6 April 2017. 18% from 6 April 2010.
Income tax
All the same – 20% basic rate, 40% higher rate, 45% top rate
Personal allowance (0% tax band)
Now £10,600. From 6 April 2016, £11,000. £11,200 from 6 April 2017.
40% income tax threshold
£42,385 at the moment. £43,000 from 6 April 2016, £43,600 from 6 April 2017.
Capital gains
The same – 18% basic rate, 28% higher rate
New dividend tax from 6 April 2016
First £5,000 free of tax, next £38,000 7.5% tax (basic rate), higher rate- 32.5% (going to 38.1% for top rate)
VAT – still 20%
For any clarification, feel free to email me at russell@rsaccountancy.co.uk
